January is a great time to reflect and set new goals for the future.

While it’s traditional to focus on improving your health at the start of a new year – especially after the excesses of the festive season – remember to think about your financial wellbeing too.

Are your financial habits impeccable? Or could they do with a kick start in 2025?

Read on to discover three practical financial resolutions that might help you begin the year on a positive note.

1. Set meaningful financial goals

Whether you’re intent on building a legacy for your children and grandchildren, or you have ambitious travel plans for your retirement, knowing what you want to achieve could give you the drive and purpose to turn your ambitions into reality.

Indeed, a 2021 study by the University of Stirling has found that individuals who set themselves goals are more likely to be successful savers than those who don’t.

Yet, FTAdviser has reported that 17% of UK adults have no long-term financial goals.

If you haven’t yet thought about your financial ambitions for 2025 and beyond, January is a great time to review, reflect, and start planning.

You might find it helpful to:

  • Think about your overarching goal and why it matters to you
  • Identify short- and medium-term goals that will help you achieve your ambition
  • Be specific – instead of saying you’ll “save money”, decide how much you want to save in 2025
  • Review your goals regularly to ensure they remain meaningful and relevant.

It’s common to set and forget financial goals made in the enthusiasm of a new year. However, monitoring your progress and celebrating each milestone could be an effective strategy for staying motivated long term.

2. Make writing or updating your estate plan a priority

Recent research by Canada Life has revealed that 44% of UK adults have not written a will. Yet, dying “intestate” – without a valid will in place – could mean that your wealth is not passed on according to your wishes.

Of course, there’s a lot more to estate planning than writing a will – although this is an important step.

For example, you might wish to include a property and financial affairs Lasting Power of Attorney (LPA) in your estate plan to ensure that someone you trust has the legal authority to manage your affairs if you become unable to do so.

Or, you might want to draft a letter of wishes to accompany your will. A letter of wishes, while not legally binding, could be a useful way to provide additional detail about how you’d like your estate to be passed on.

What’s more, working with a financial planner to craft a comprehensive estate plan could help you understand your Inheritance Tax liabilities and allow you to pass on your wealth as tax-efficiently as possible.

Read more: How to gift money and reduce a potential Inheritance Tax bill

So, if you’ve yet to create an estate plan or it’s been a while since you reviewed yours, you might want to consider bumping this task to the top of your to-do list this January.

3. Start talking to your loved ones about money

You may feel uncomfortable talking to your family about your finances, especially sensitive matters such as estate planning.

Yet, being open about such topics could help reduce the risk of stress, upset, and disagreements for your loved ones down the line.

What’s more, talking about money could allow you to pass on some of your financial wisdom to younger members of the family.

You might also gain valuable insight into your loved ones’ financial situations, which could help you make important decisions about how you manage and share your wealth. For example, if your child or grandchild is struggling to buy their first home, you may decide to gift them some of their inheritance during your lifetime.

Starting a conversation about money could also allow you to share important practical information, such as:

  • Details of your financial accounts
  • Where to find your will
  • Who you have named as an attorney in your LPA
  • How to contact your financial planner.

This could ensure that your wishes are followed and that your loved ones are spared unnecessary stress and uncertainty if you become unable to manage your affairs independently.

Get in touch

If you’d like to find out how we can help you build positive financial habits and plan for 2025 and beyond, we’d love to hear from you.

Email hello@intelligentpensions.com or call 0800 077 8807.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning, tax planning, Lasting Powers of Attorney, or will writing.